Spanish windpower turbine producer Gamesa has announced a 2013-2015 Strategic Plan that includes 1,800 job cuts in a process that will conclude in the first quarter of 2013.

The company's goal is to reduce its fixed costs by €100m from 2011 to 2013. Of the planned job cuts, 480 will take place in Spain, affecting 10.9% of its staff in the country.

"This plan is not just about slimming down the company but about getting it ready for the future," said Gamesa Chairman Ignacio Martin.

The plan also entails the closure of 46 installations, 35% of the total.

Analysts at Ahorro Corporacion have weighed in on the company's plan and explained that the company's guidance for 2012 is in line with their estimates but the 2013 sales forecast for windpower turbines is lower than expected.

"In regards to the company's outlook for 2015, we consider it to be very aggressive, especially in regards to the EBIT margin. We believe that there is a lack of detail on how it will be achieved and thus the market may become a bit skeptical," they said.

TECHNICAL ANALYSIS

Technical analysts at Digital Look have taken a look at the Spanish stock, which they say has never been easy to analyse because the underlying trend is so bearish that strong rebounds suggest a market bottom but become very short-lived.

"The weekly chart starting in 2011 shows a perfect bearish trend line that has frequently acted as resistance. Now, however, it appears to be a support level," they explain.

"We have also seen how the stock has retraced by 50% to €1.479 following a strong rally that practically doubled the stock price over the summer. In theory, the stock has the potential to resume the short-term bullish trend in search for the high reached in September at €1.9380."

Shares of Gamesa were leading the gains on the Ibex35 throughout Friday's trading session.

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